Trust Fund Plan
Definition of "Trust fund plan"
One of two basic types of funding instruments for pensions or employee benefits, in which responsibility for plan assets is vested in a trustee. The other type is known as an insured plan, whose assets are held by a life insurance company, typically under a group annuity contract that guarantees payment of benefits. A combination plan makes use of both approaches, with some contributions going to a trustee and the remainder to an insurance company.
Popular Insurance Terms
Section of the insurance company that administers claims for the losses incurred by the insured. ...
Total earned premiums minus total expenses and losses paid of the insurance company. ...
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If the annuitant dies before receiving total income at least equal to the premiums paid, the beneficiary receives the difference in a lump sum. If the annuitant lives after the income paid ...
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